HYC: Expected net profit loss of approximately -480 million yuan in 2024

HYC announced that it expects to achieve a net profit attributable to the parent company's owners of approximately -480 million yuan for the year 2024, and a net profit attributable to the parent company's owners after deducting non-recurring gains and losses of approximately -520 million yuan. The company's performance changes are mainly due to the low recovery of the consumer electronics industry's prosperity, fluctuations in market demand leading to a decline in product prices, intensified market competition affecting gross profit margins, and rising operating costs, including increased investment in new market development, growth in personnel numbers, and rising raw material costs. In addition, the wholly-owned subsidiary Suzhou HYC Automation Technology Co., Ltd. did not meet the expected net profit for 2024, leading to the recognition of goodwill impairment provisions and impairment provisions for related assets that may incur asset impairment losses